Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

We all acknowledge how vital the wage subsidy scheme has been since it was introduced in March 2020. The Exchequer has paid over €8 billion across the two wage subsidy schemes in that period. Even at this moment, we still have approximately 300,000 workers whose wages are paid in part or in full under the wage subsidy scheme. There is a significant cost at over €400 million a month. This is not a scheme we can sustain over the medium to long term. Therefore, we will need to make changes and taper off the scheme over the coming period. On budget day we will set out our precise plans on that.

Not all the €2.5 billion that we have earmarked for potential allocation to Votes on budget day will be for income supports. It will include, for example, funding on transport, education, justice and health and will also carry over the training and activation measures from the July stimulus of 2020 where implementation was in some instances delayed due to the resurgence of the virus. That is where we intend to place in broad terms whatever amount of the €2.5 billion we allocate.

We are retaining a contingency of the order of €2.8 billion and it is out of that contingency fund that we will allocate some funding for the extension of the employment wage subsidy scheme. We also will have to hold back some money for the uncertainties of what may present over the course of next year. The income supports will come out of that contingency fund.